FCA could make firms' ability to offer MPS 'economically unviable'

PIMFA raises concerns over the FCA’s proposals for sector harmonisation

Sahar Nazir
clock • 1 min read

The Financial Conduct Authority’s (FCA) proposals to align regulation in the wealth and fund management industries could pose a “material threat” to firms’ economic ability to offer managed portfolio service (MPS) solutions, the Personal Investment Management & Financial Advice Association (PIMFA) has warned.

The trade association today (24 May) said it has "serious concerns" about the proposals, which were published earlier this year in a discussion paper (covered here by Professional Adviser's sister title Investment Week).   The regulator said at the time that feedback would help shape its approach to rulemaking under the new regulatory framework for financial services. PIMFA has now warned the FCA that the cost implications of the proposed regulation could make it unviable for firms to offer MPS solutions. MPS remain highly popular with clients due to their proportionally lower fees...

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